Card Factory sent out a positive message about the whole greeting card market with the announcement of its interim results (which cover the six months to 31 July 2021).
The UK’s largest greeting card retailer revealed a 16.3% increase in sales (to £116.9 million year on year), despite a drop in footfall, with an increase in ‘basket size’ serving to mitigate against the fewer customer visits. Profit before tax came in at a £6.3 million loss, which is a 70% improvement on last year’s £22.2 million loss for the same period.
While acknowledging “there remains some uncertainty about the speed of the post-pandemic market recovery,” Darcy Willson-Rymer, ceo of Card Factory reinforced that a firm belief in “both the resilience of the card and gifting markets and the fact that the majority of customer spend will remain in stores for the years to come.”
He revealed that while Card Factory will continue very much as a “card-led retailer” seeing this as “a stable UK market where 76% of adults are card givers”, the multiple is to expand its complementary gifting and party ranges, across store and online channels.
In addition to new complementary categories such as confectionary and stationery, existing card ranges are to be broadened by the introduction of new contemporary categories.
“As we increase our focus on complementary, higher value, lower margin products and basket mix shifts accordingly, we anticipate a reduction in the group’s percentage margin, which is reflected in our revised long-term guidance, adds Darcy.
Card Factory still sees a potential to expand its physical estate of over 1000 stores across the UK and Republic of Ireland, it is looking to open another 100 shops by the end of 2026, targeting under penetrated areas, including London, the Republic of Ireland, and areas of high footfall, including retail parks.
It is however looking to further reposition itself as an omni-channel retailer, with a stronger international presence as well as online.
* Card Factory’s studio director Jo Bennett will be giving a speech at the imminent GCA Conference and AGM about the changes in consumer mindsets and how these are reflected in greeting card buying habits. The GCA Conference and AGM takes place on 14 October at Bridgewater Hall, Manchester (https://www.pgbuzz.net/the-majority-of-greeting-card-buying-is-back-to-pre-covid-levels-reveals-gca-research/)
Top: Card Factory is aiming to open another 100 stores over the next five years.
